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Mar 11, 2020

Hungary’s economy and growth advantage will be protected by additional policy measures

Mihály Varga, Minister of Finance, said a prime objective would be to expand room for maneuver in economic policymaking and speed up competitiveness measures.

The finance ministry is ready to protect the achievements of Hungary’s economy and growth advantage by additional policy measures.

At an event organized by the Hungarian Chamber of Commerce and Industry, Mihály Varga, Minister of Finance, said a prime objective would be to expand room for maneuver in economic policymaking and speed up competitiveness measures. The six-year tax and wage agreement and stability will also be preserved, and efforts will continue to be made to attract investments.

What’s more, Minister Varga said the economic impact of the coronavirus around the world may be more severe than its human footprint. Whereas the new virus combined with low commodity prices may partially benefit the Hungarian economy, the downside risks are not yet known.

According to MTI, the minister said the budget had been drafted to withstand tough circumstances, but interventions to help economic players would be made if necessary. “I’d like the economy this year to continue to be driven by consumption, wage flows and capital inflows,” he said.

Meanwhile, György Matolcsy, governor of Hungary’s central bank, told the same event that the long-term effects of the coronavirus were hard to predict, but its economic impact would last for several years.

“The stronger Hungarian economy means a stronger immune system,” he said. “Compared with many EU countries, Hungary’s economic resilience is stronger.” Matolcsy also warned that the new coronavirus would affect all areas of the economy.

Photo credit: kormany.hu